A Study on Consumer Behaviour towards Biscuit & Bakery products

in Rural

Prepared ByDewasish Ghoshal

PGDM (Agriculture)NAARM, Hyderabad

Session Overview

Study IntroductionResearch MethodologyA Brief introduction of ChoutuppalIntroduction of Biscuit IndustryProducts available in RuralConsumer PreferencesSWOTSuggestion/ Recommendation

IntroductionStudy Title•A Study on Consumer behaviour towards Biscuit in Rural

Objective of the Study•To understand consumer preferences in Rural•To understand the distribution pattern & promotion mix

Area of the Study•Choutuppal, Dist- Nalgonda, AP

Methodology•Data source - Primary & Secondary •Research Approach - Survey Method

Research Methodology

•Sampling unit -Retail outlets•Sampling Size -10•Sampling - Random Sampling•Data collection Instrument - Survey Questionnaire

Data Collection Technique &

Sampling

•Data availability from the secondary sources was sometimes not consistent with actual field level data and from other sources.•The information collected from the consumer and shopkeeper based on personal interviews and hence may not be Satisfactory.

Limitations of Study

A Brief Introduction about Choutuppal

Tehsil/Mandal- Choutuppal District- Nalgonda State- Andhra Pradesh Villages- 28 As of 2001 India census, population of

14,710. Males constitute 50% of the population and females 50%.

Literacy rate of 65%, higher than the national average of 59.5%

Male literacy is 73% and, female literacy is 58%.

In Choutuppal, 15% of the population is under 6 years of age.

Source: http://en.wikipedia.org/wiki/Choutuppal

Introduction On Biscuit Industry

Unorganised sec-tor

40%Organised sector60%

Two sectors of Biscuit Industry

Rural-urban penetration of Biscuit :Urban Market : 75% to 85%Rural Market : 50% to 65% Per capita consumption of Biscuits : INDIA 1.8 kg,South East Asian Countries 2.5 kg to 5.5kgUSA 7.5 kg

Products available in Rural (Choutuppal)

Local Brand- Twistee Bakery Products

Consumer Preferences (Findings)

Nearness to House

Reasonable Price

Taste/Quality

Brand 02040

Purchasing Behaviour from Shop (%)

Purchasing Behav-iour from Shop (%)

Television

Radio

Poster/BannerShopkeeper

Friends

0

20

40

Acquintance to Product (%)

Acquintance to Product (%)

Price

Taste (Quality)

Brand Promotion

Availability 0

20

40

Preferences on Buying

Preferances on Buying

Parle-G

Tiger-Britannia

Twistee (Local)

Good Day-Britannia 0

20

40

Overall Preference (%)

Overall Preference (%)

SWOT

WeaknessStrength

Opportunity(1) Annual Growth of 6% in rural and 24%

Urban(2) Changing consumer preferences(3) Increasing demand for sugar free biscuits(4) Increasing purchasing power among rural

folks(5) Low per capita consumption(6) Increasing education and awareness

about brands(7) Improved infrastructure in rural area

Threat(1) Hike in cost of production resulting hike in raw material cost(2) Increasing distribution cost(3) Growing competitive products (local Bakery)(4) Spurious product in rural area(5) Regional products replacing biscuit

Suggestion/ Recommendation

Focus and Comprehensive Brand building Strategies, Short term & Long

term Goal

Differentiate between Target Customer and Rural mass

Flexible Policies (Promotional Strategies)

Capture the events like Melas, Haats etc

Regular Feedback should be collected from Rural mass (yet not done)